In recent developments within financial regulation, the Central Bank of Ireland has imposed a substantial penalty on Coinbase for significant breaches of anti-money laundering (AML) and counter-terrorist financing (CTF) obligations. The fine amounts to $24.75 million (€21,464,734), marking a pivotal enforcement action aimed at enhancing compliance within the cryptocurrency sector.
Central Bank of Ireland Takes Action Against Coinbase
On a notable Thursday, the Central Bank of Ireland revealed its inaugural enforcement action concerning the cryptocurrency industry by fining Coinbase Europe Limited, the European division of the well-known American exchange. This action stems from various failures in AML monitoring that occurred over the last four years.
In the settlement announced on November 5, 2025, the original penalization of $35.3 million (€30.6 million) was negotiated down to $24.75 million thanks to a 30% settlement discount agreed upon by both parties.
The process involved Coinbase Europe acknowledging the identified violations and consenting to the facts outlined in the Settlement Notice. The sanctions are pending approval from the High Court and will be enforced following that confirmation.
The penalties were largely due to failures in the configuration of Coinbase’s transaction monitoring system, which resulted in over 30 million transactions not being adequately monitored in a twelve-month period. The cumulative value of these transactions was approximately €176 billion, representing nearly 31% of all transactions conducted by Coinbase Europe during the period of non-compliance.
As a registered Virtual Asset Service Provider (VASP) in Ireland, Coinbase is mandated to monitor customer transactions diligently. They are required to file a Suspicious Transaction Report (STR) with the national Financial Intelligence Unit (FIU) whenever any transaction is suspected of facilitating illicit activities.
Despite the regulatory requirements, it took Coinbase nearly three years to fully complete the monitoring of the more than 30 million affected transactions. This delay culminated in the submission of 2,708 STRs to the FIU, which highlighted suspicions of significant criminal activities.
Colm Kincaid, Deputy Governor for Consumer and Investor Protection, emphasized the necessity of effective transaction monitoring systems within financial institutions. He stated, “Failure in these systems creates the potential for criminals to exploit the situation.”
He underscored the importance of timely reporting of any system failures to the Central Bank, enabling necessary risk management measures to be implemented swiftly.
Allegations of Improper Conduct
In an unrelated issue, Coinbase has also faced scrutiny in the United States. Senator Chris Murphy recently called out the exchange for supposedly being involved in activities related to President Donald Trump’s alleged “corruption factory.”
According to reports, Senator Murphy pointed to Coinbase’s donations to Trump’s presidential campaign as a potential political arrangement affecting ongoing litigation with the Securities and Exchange Commission (SEC).
Defending the company’s integrity, Coinbase’s Chief Legal Officer Paul Grewal and Chief Policy Officer Faryar Shirzad flatly denied these assertions, describing them as based on misconceptions. Shirzad insisted that the SEC’s legal actions against Coinbase were indicative of a troubling pattern of abuse of authority.
Moreover, Grewal asserted, “What was corrupt was the treatment of our public offering and subsequent legal challenges.”
It is important to note that Coinbase has been vocal about the need for clearer regulations in the crypto space. Earlier this year, the exchange made a Freedom of Information Act (FOIA) request to obtain information on the SEC’s enforcement spending targeting crypto businesses during the Biden Administration.
